Pogea doesn't rule out a 0.5% economic contraction in 2010

Minister of Finance, Gheorghe Pogea said visibility into 2010 remained limited, as the country may remain economically weak through next year. Ministry of Finances expects the Gross Domestic Product to increase by 0.5% but a 0.5% decrease is not ruled out.

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“Outlook for 2010 remains surrounded by uncertainly, growth prospects remain fragile. We are considering a zero economic growth, it may be +0.5% or -0.5, said Pogea.

The Government is taking into account an economic contraction of 8.5%for this year and a Gross Domestic Product of 497.3 bln lei. Last year, Romania’s GDP stood at 504 bln lei (€136.8 bln).

International Monetary Fund projected a contraction of the country’s economy by 8.5% and a growth of 0.5% in 2010.

Economic projections for Romania:

- IMF expects the country’s economy to come back in the positive territory in 2010;

- National Prognosis Commission said Romania was likely to emerge from recession in second quarter 2010;

- Capital Economics says recession may last into 2010, adding that optimism on the country’s recovery is premature;

- Governor Mugur Isarescu expects the economy to pick up in fourth quarter;